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Putting A Value On A Customer List

svtcobra

LawnSite Member
Looking to acquire an established customer list. I am looking to purchase the list only to add to my current baseand was wondering if there is a rule of thumb that people use to do this. I was thinking along the the lines of the equivalent to 3 or 4 mows? Any ideas and input would be greatly appreciated.
Thanks
 
If you find it for that you better snatch it up. I sold off 30 accounts about two years ago. All on contract and sold them for six months of their revenue worth. To me 3 or 4 mows someone might as well be giving them away.
 
OP
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svtcobra

LawnSite Member
We don't mow all year here, we only mow for 6 months of the year, so would you think half of a season (3 Months) worth of revenue? Would you go off gross or net?
 

MnGreen

LawnSite Senior Member
Location
Minnesota
Looking to acquire an established customer list. I am looking to purchase the list only to add to my current baseand was wondering if there is a rule of thumb that people use to do this. I was thinking along the the lines of the equivalent to 3 or 4 mows? Any ideas and input would be greatly appreciated.
Thanks
I don't see anything about a "contracted" list, the amount of accounts or price in your statement.
Buying a list of names is a crazy gamble at best and worth zero in my opinion.
Even contracted, on a 6 month season I would not pay over 30% of monthly gross.
After costs/time of services and taxes on top of the purchase you have no clue what retention rate
you will end up with. Plus you have no security of a "non compete" mentioned that keeps the guy from
starting right back up again with your cash in his pocket.
 
I don't see anything about a "contracted" list, the amount of accounts or price in your statement.
Buying a list of names is a crazy gamble at best and worth zero in my opinion.
Even contracted, on a 6 month season I would not pay over 30% of monthly gross.
After costs/time of services and taxes on top of the purchase you have no clue what retention rate
you will end up with. Plus you have no security of a "non compete" mentioned that keeps the guy from
starting right back up again with your cash in his pocket.
I would call this gentleman when he gets ready to get rid of his clientel, he will give them to you.
 
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